A joint venture between Tata Teleservices, Limited (TTL), MMP Mobi Wallet Systems Ltd (MMPL) and state government, the project is a prepaid wallet service where any mobile customer can register for this wallet and then load it with cash at designated mRupee retail outlets, Shettar said.

The service allows residents to pay for electricity bills, property tax, water bill, traffic challan and many more government services, he said.

MMPL enables the government to take the mode of payments by residents beyond credit cards, through the use of 'mRupee’, a prepaid wallet service, he said.

Tata Teleservices are also providing USSD connectivity for the residents to access the services, TTL Executive President Deepak Gulati said.

Karnataka Principal Secretary I S N Prasad said services would be enabled across multiple access channels like USSD, Voice and Mobile Web to cover the entire range of phones, from a basic to an advanced smartphone.

"Our association with Tata Teleservices allows us to enable payments over a prepaid mobile wallet, apart from the other traditional payment instruments, which is vital in ensuring a wide adoption of the service," he said.

Urban Development Minister S Suresh Kumar was present on the occasion.